When you take the minimalist approach, the first kind of
codes (inline) should stay with the text (protected inside
the <source> and <target> as one of the XLIFF inline codes
(<bpt>, <g>, etc.)), the second kind should not be in the
<source> or <target> (and would probably not even be in the
XLIFF file).
The question is:
Which elements should remain inside the extracted text.
For example: <input> or <button> are 'inline' in the HTML
DTD but not treated as such in most of the tools. So should
we treat it as inline or not? What do we do with <br>?,
<option> is 'inline' in the DTD but contains a sub-flow,
what do we do with it? Etc.
We probably already have a pretty good idea of the answer
for most cases, but if everyone has a look at it we can
probably catch more problems, and we can have a better
resolution for the difficult ones (if there are any).
A good place to remember what each tags do is here:
http://www.w3.org/TR/html4/index/elements.html
I hope this helps.
Cheers,
-yves